Another blow to government's green credentials as report says public owned forests and woodlands are 'greatly undervalued'

The benefits of England's publicly owned forests were "greatly undervalued" by the planned state sell-off, a government-appointed panel will say on Thursday in a report that deals a new blow to the coalition's green credentials.

The independent report, seen by the Guardian, says the £20m cost to the state of maintaining the forests and woodlands is "very modest and delivers benefits far in excess of this" and contrasts the sum with the £250m spent on reinstating weekly bin collections.

The social benefits of the natural environment – estimated at £1bn-£2bn for woodlands alone – were highlighted by the government's own landmark assessment in June, but the new report makes clear these benefits were overlooked in the forestry proposals. It comes amid a furore over plans to relax planning rules and just a week after George Osborne enraged environmentalists by talking of "endless social and environmental goals" and arguing that some placed "ridiculous costs on ...